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A Handbook to GuidePersonal Representatives

“The Road to Success”

Prepared and Presented by:

Georgia Council ofProbate Court Judges

and the

Fiduciary Law Section ofthe State Bar of Georgia

©2007

DUTIES AND RESPONSIBILITIESOF PERSONAL REPRESENTATIVES

OF DECEDENTS' ESTATESIN GEORGIA

A Handbook to GuidePersonal Representatives

“The Road to Success!”

Prepared and Presented byGeorgia Council of Probate Court Judges

and theFiduciary Law Section of the

State Bar of Georgia©2007

ACKNOWLEDGMENTS

This handbook was prepared as a public service by the GeorgiaCouncil of Probate Court Judges and the Fiduciary Law Section ofthe State Bar of Georgia. It is intended as a useful guide to thosewho are appointed as personal representatives of the estates ofdecedents in Georgia. It is not intended to be a comprehensivestatement of the law. If you have any questions regarding the mat-ters contained in this handbook, please consult your attorney orthe probate court in which you were appointed. Please note thatthe probate judge and the court staff may not act as your legaladvisors, and if your questions concern your legal responsibilitiesor your potential liabilities, please consult your attorney.

The Georgia Council of Probate Court Judges and the FiduciarySection of the State Bar of Georgia would like to acknowledge thecontribution of the following to the preparation and production ofthis handbook.

Mary B. Galardi, Esq., Mary B. Galardi, P.C., Norcross (Chair)Judge Lynwood D. Jordan, Probate Court of Forsyth CountyJudge William J. Self, II, Probate Court of Bibb CountyJohn M. Sheftall, Esq., Hatcher Stubbs Land & Hollis, Columbus

Yolanda L. Lewis, Administrative Office of the Courts, AtlantaLaShawn Murphy, Administrative Office of the Courts, AtlantaAshley Stollar, Administrative Office of the Courts, Atlanta

Table of Contents

1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

2. Marshaling the Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

3. Paying the Debts and Expenses of

Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

4. Selling Estate Property . . . . . . . . . . . . . . . . . . . . . . . . . . .8

5. Tax Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

6. Distributing the Estate to Heirs or Beneficiaries . . . . . . .11

7. Filing Returns or Reports with the Probate Court . . . . . .13

8. Closing the Estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15

Glossary of Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17

My Case . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

1.INTRODUCTION

You have been appointed by a Probate court in Georgia as the“Personal Representative” of an Estate of a deceased person. Theterm “personal representative” includes executors and co-execu-tors of the Will of the deceased person and administrators and co-administrators of estates of persons who died without a valid Willor whose Will named no executor (or no named executor willqualify). In this booklet, “PR” will refer to the personal represen-tative.

Before receiving authority to administer the estate, you wererequired to take an oath of office by which you swore or affirmed(promised) to perform the duties of your office in full compliancewith the law. As evidence of your authority to administer theestate, you were issued one of the following: “LettersTestamentary,” “Letters of Administration with Will Annexed,” or“Letters of Administration.”

It is now your duty and responsibility to administer fully and com-pletely all of the estate, and you may, in certain circumstances, beheld personally liable for any loss suffered as a result of your fail-ure to properly administer the estate. It is strongly advised thatyou hire an attorney to represent and advise you while you servein this important position. At any time during the administrationof the estate, if anything comes up that causes you concern aboutyour legal responsibilities or liabilities, please consult an attorneybefore you proceed further.

It is also important that you understand the responsibilities of theProbate court by which you were appointed. The Judge and thestaff of the Court may not act as your legal advisors and may not

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give you legal advice. The Judge is ethically prohibited fromadvising PR's and from discussing with any PR any matterinvolved in an estate which might become a contested issue unlessall parties have been given an opportunity to be present.

If you are required to file returns or reports with the Probate court,it is your responsibility to prepare them, and you should notexpect the Court staff to prepare them for you. (See Section 7 formore information about reports to the Court.)

Your “Road to Success” has been mapped out for you in thisbooklet. You are to (1) gather all of the assets, (2) sell assets ifnecessary, (3) pay all debts and expenses of administration, (4)distribute the remaining estate, and (5) close the estate. However,this booklet presents only a basic outline of your duties andresponsibilities; no attempt has been made to address every situa-tion or legal issue that could arise in the administration of anestate. Every estate is different. On your “Road to Success,”there may be requirements that do not apply in every case (forexample, the requirement to file tax returns, Section 5, and/or therequirement to file reports with the court, Section 7). If the sale ofproperty becomes necessary, you may need the court's permissionor authority before you are able to sell it (See Section 4).

Should you need to contact the Probate court about the estate youare administering, please be sure to have the case identifyinginformation available when you come in or call:

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Your Probate Court

Court:

Address:

Telephone:

Primary Contact Person

For Your Case is:

Your Case No. is:

2.MARSHALING THE ASSETS

One of a PR's first duties is to locate, identify, and take possessionof all of the deceased's assets which are controlled by the estateadministration. These are called “probate assets.” Probate assetsare any type of property owned by the deceased, including person-al effects (such as furniture, jewelry, works of art and gun collec-tions), automobiles and boats, investments (such as stocks, bonds,bank accounts and brokerage accounts), and real estate. Probateassets would also include any ownership interests the deceasedheld in any closely held businesses or partnerships, which mayrequire administering.

The deceased may also have owned property which is not definedas a “probate asset.” The three most common forms of non-pro-bate assets are: (1) jointly owned bank or brokerage accountswhich pass automatically by operation of law to the surviving co-owner; (2) life insurance policies payable upon the death of thedeceased to named beneficiaries, rather than to the deceased'sestate; and (3) pension benefits or other types of deferred com-pensation or retirement accounts which are payable to named ben-eficiaries, often the surviving spouse, rather than to the deceased'sestate. With any type of non-probate property, the PR will proba-bly need to obtain documentation about the asset for tax purposesand may well need to facilitate the receipt of the asset by the des-ignated beneficiary or co-owner, even though the asset itself is nottechnically a part of the deceased's probate estate.

Although it is presumed that bank accounts in joint names werecreated with an intent of joint ownership, if it can be shown thatthe account was created by the deceased and opened in jointnames as a convenience for the deceased, the estate of the

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deceased may be entitled to the funds in the account. It is the PR'sduty to ascertain whether the estate has a claim for funds in a jointaccount, and the PR should seek legal advice if the ownership is indoubt.

Life insurance policies payable to a deceased's estate and pensionor deferred compensation benefits payable to a deceased's estateare probate assets, and it is the responsibility of the PR to collectthe proceeds or benefits.

The process of securing (marshaling) probate assets variesdepending on the type of property. With respect to personaleffects, often located within the residence of the deceased, mar-shaling may simply require securing the premises where the prop-erty is located. The title certificates to titled vehicles, trailers, etc.,should be secured and protected pending a sale or distribution.The same applies to real estate titled in the deceased's name; thePR must take control of the property, making certain that it issecured and managed. This includes insuring that all pertinentcommunication about the property, such as property tax bills, utili-ty bills, etc., is directed to the PR. It is also the PR's responsibilityto maintain appropriate insurance on the estate assets.

Financial investments such as stocks, bonds, and accounts should,in most cases, be transferred into an estate bank or brokerageaccount titled in the name of the PR as executor or administratorof the deceased's estate. By doing this, the PR has not onlyobtained possession of the property but also has the ability tomanage it during the period of the estate administration, pendingsale or distribution.

Closely held business interests or partnership interests owned by adeceased require special attention. There may be restrictions gov-erning, directing or limiting the disposition of the deceased's inter-

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est(s). If the deceased was involved in the management of thebusiness or partnership, the PR may be obligated to assume thoseduties, if only temporarily, to insure continuity of management ofthe business. While it is a good idea for any PR to consult anattorney about the particulars of an estate administration, the pres-ence of business interests, whether active or passive, heightens theresponsibilities and potential liabilities of a PR, making the adviceand guidance of an experienced estate lawyer all the more impor-tant.

If someone interferes with a PR's ability to secure or administerestate assets, then the PR may need to take legal action to protectthe estate's interest or to prevent the interference with the PR'sadministration of estate assets. The type of action the PR mustfile and the court in which the action is properly filed dependupon the circumstances of the interference and the certainty of thedeceased's ownership interest. Any legal proceeding of this typeis likely be adversarial and should not be undertaken without legalrepresentation.

3.PAYING THE DEBTS AND

EXPENSES OF ADMINISTRATION

A PR may be ready to pay creditors after a few months. Creditorsmust be paid before the PR can safely distribute inheritances.When should estate debts and expenses be paid? Which billsshould be paid first?

While the law gives the PR six months after appointment in whichto determine the condition of the estate, during which heirs or ben-eficiaries may not demand a distribution, the PR must notify credi-tors much earlier.

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The PR must publish a notice to creditors within 60 days of thedate the PR takes office. This notice to creditors must run for fourconsecutive weeks in the official newspaper in the county wherethe estate's Probate court is located. This notice is traditionallycoupled with a notice to debtors owing money to the estate and isoften called a “notice to debtors and creditors.” Probate courtshave sample copies of these relatively short, concise notices.

The published notice starts the countdown clock for creditors.Creditors must make known their demands for payment directly tothe PR, not the court, within three months after the fourth publica-tion of the notice. There are consequences to creditors who fail tomake their demands known; however, a creditor's failure to file ademand does not extinguish the debt. Both the PR and creditorsmay benefit from legal advice should questions arise whether aclaim is valid and what notice or action, if any, should be filed.

If the PR published the notices to creditors in a timely manner asthe law requires, the PR should receive all creditors' demands forpayment before the end of the initial six month estate examinationperiod.

Which creditor is paid first? The legislature has set out the orderin which estate debts are to be paid. If the assets run out beforeall debts are paid, those creditors lower on the list are not paid.

The highest priority claim against estate assets is an award ofyear's support to the family, which has top priority and which ispaid before all creditors.

The deceased's funeral bills are second in line for payment. If thefuneral bills were paid prior to the appointment of a PR, the per-son(s) making the payment may be entitled to priority reimburse-ment.

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Third in priority are the necessary expenses of administration.This category may include court filing fees, advertising costs, pro-fessional services such as legal and tax advice, surety bond premi-ums, costs of sale, the PR's commissions, and similar items. Someitems are subject to special rules. In cases of doubt, it is best toobtain legal advice regarding whether a particular item is all orpartly an “expense of administration.”

Occupying the fourth level of priority are reasonable expenses ofthe deceased's last illness. In some cases in which the physicaldecline was slow or the medical conditions complicated, the PRmay need assistance to determine whether a particular treatmentexpense is indeed attributable to the “last illness” thereby giving itpriority at this fourth level. If it is not, the treatment expense mayfall down to a lower priority level.Unpaid taxes or other debts due the State or the United States arefifth in line for payment.

Sixth in priority are judgments against the deceased, securedloans, and other liens created by the deceased during life. Theseliens have priorities among themselves according to other lawsenacted by the legislature unrelated to estates, and they must bepaid as those separate priorities dictate. A security interest or lienon a specific piece of property, such as real estate or a vehicle, ispreferred only to the extent of such property. Payment of thesetypes of debts requires specialized legal assistance in most cases.

Last in priority are all other debts not mentioned above.

The PR must first apply the assets of the estate to the highest pri-ority claims. If estate assets are sufficient to pay all claims, thenthe priority scheme obviously does not matter. On the other hand,if assets are insufficient to pay all claims, those debts with highestpriority must be paid first or the PR may be held liable to a higher

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priority claimant who is not paid. If the assets will run out withina certain priority level, the creditors in that level are paid pro rata(except secured creditors and lien holders).

The PR should consider help and advice regarding payment ofcreditors because there are special rules beyond the scope of thishandbook. Specific assets may be liable for certain debts.Especially in cases where the assets are not sufficient to pay alldebts in full, the PR must take precautions to avoid liability forhaving paid claims improperly.

Debts must always be paid (or be assured of payment from assetsof the estate) before distribution is made to heirs or beneficiaries.When all debts have been paid, distributions to heirs or beneficiar-ies can be made.

4.SELLING ESTATE PROPERTY

In the course of administering an estate, the PR may need to sellproperty, either to be able to pay debts or expenses, or to be ablebetter to distribute an estate among the beneficiaries. A PR mightbe required under a Will to sell property, while, at other times, itmay be advisable to sell property as a part of managing an estateduring the period of administration.

In all cases, the PR must have the authority to sell the property inquestion. This authority of the PR to sell may: (1) be grantedunder the terms of a Will; (2) be granted by law; (3) be granted byblanket order of the court at the time of appointment or at a laterdate; or (4) be granted by the court on a petition concerning spe-cific property.

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Even when the PR does not have specific authority by Order orWill to sell estate property, Georgia law permits any PR to sellpublicly traded stocks or bonds at private sale without having toobtain a special court order, provided the securities are sold at thecurrent stock exchange price or at the published bid price.

If a PR without specific authority holds perishable property(defined as property either liable to deteriorate if retained or tooexpensive to retain), the PR may need to sell this property as soonas possible. A petition must be filed in the probate court seekingauthority from the probate court judge to sell the perishable prop-erty in a manner set forth in the petition. The probate judge willdetermine what type of notice and to whom notice is to berequired and will determine the approved method of sale.

When a PR needs authority to sell, rent, lease or exchange othertypes of property, such as real estate or business interests, the PRmust petition the court for the authority to do so. The petitionmust set out the particulars of the proposed transaction, includingits purpose, the purchase price, and other details. Heirs or benefi-ciaries of the estate must be notified of the proposed transactionand given an opportunity to object prior to a hearing on the peti-tion. The court may, according to the circumstances of the case,direct either a public or a private sale in accordance with thejudge's determination as to what is in the best interest of the estateand the heirs or beneficiaries. After receiving a specific orderauthorizing the PR to sell, rent, lease or exchange property, the PRwill be required to make a full report back to the court.

When selling estate property, a PR should be particularly cautiousin any transaction which gives rise to a conflict of interest or evenan appearance of a conflict of interest. A potential conflict ofinterest exists anytime the PR is the proposed purchaser, is relatedto the proposed purchaser, or holds a joint interest in the subject

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property. Except when specifically authorized by a will, a PRshould petition the court for authority to sell in any case of apotential conflict of interest, with full disclosure to the court andthe heirs or beneficiaries. Otherwise, the transaction may be con-sidered fraudulent, subject to being set aside by the probate courtor some other court in the future.

As always, the PR should consult the estate's attorney concerningwhether and how to sell estate property.

5.TAX RETURNS

The PR is responsible for filing certain tax returns and may beheld liable for failing to pay taxes due from estate assets. The PRwill often use the deceased's tax preparer because that personalready knows the deceased's financial situation. State tax returnsmay be required in addition to federal tax returns.

The deceased's final income tax return is due by April 15th in theyear following the year of death. If the deceased died before filinga previous year's tax return, the PR may be required to file morethan one income tax return: (a) the income tax return(s) for theprevious year(s); and, (b) the final income tax return for the yearof death. If the deceased is survived by a spouse, the PR shouldconsult with the surviving spouse to determine whether jointreturns may or should be filed.

In addition to the tax returns for the deceased, the PR will berequired to file income tax returns for the estate if the estate has orearns income beyond the death of the deceased.A federal employer identification number (EIN) from the IRS maybe required for accounts opened by the PR in the name of the

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estate at financial institutions. This EIN will also be used on taxreturns filed by the PR for the estate.

If required, the PR is also responsible for filing an estate taxreturn. Professional tax advice should be sought as soon as possi-ble as some requirements must be met within a short time afterdeath (usually 9 and 15 months). Appraisals of properties may benecessary as proof of values. An estate tax return may be requiredeven when no tax is due.

If trusts are involved in the estate, there may be other returns due,which may or may not involve the PR. The PR may be able totake action to reduce the number of tax returns due.

There is no substitute for timely and qualified legal and taxadvice.

6.DISTRIBUTING THE ESTATE

TO HEIRS OR BENEFICIARIES

After the PR has settled and paid all claims, expenses and taxes ofthe estate, the remaining assets may be distributed to the heirs orbeneficiaries of the estate. Normally, a final accounting is pre-pared and presented to the heirs or beneficiaries for approval priorto distribution. As stated in the section on taxes, in some estates,important tax considerations are involved in making distributionsfrom an estate, and the PR should consult the estate's attorney forassistance.

When there is a will, the PR is required to distribute the assets ofthe estate to the beneficiaries as directed in the will. If the willincludes specific bequests of property of the estate, and the estate

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contained the specific property when the decedent died, then thePR must distribute the specific item(s) as provided in the will. Ifthe decedent disposed of the item before his or her death, then thegift is no longer valid. There are many variations of ways thatproperty is given in a will, and the PR should consult the estate'sattorney for assistance to ensure that the property is being distrib-uted as required by the will.

If there is no will, then the PR is required to distribute the assetsof the estate to the heirs as required by the laws of intestacy in theState of Georgia. Heirs are the closest relatives of the decedent,including the decedent's spouse, if living, and the children of thedecedent, including adopted and children born out of wedlock.Stepchildren are not heirs. If a child has died before the decedent,that child's children (grandchildren of the decedent) receive thedeceased child's share of the estate. If the decedent is survived bya spouse but not by children, the spouse is the sole heir and isentitled to the entire estate. If the decedent is survived by aspouse and children (or descendants of a child), then the spouseshares equally with the children; however, the spouse is alwaysentitled to at least one-third of the estate. If any property is to bedistributed to a minor, then the PR is in some cases required topay over the funds to a duly appointed conservator for the minoror to the probate court to be deposited into a custodial account forthe minor. The PR should consult the estate's attorney beforemaking any distribution to or for the benefit of a minor.

When there is a will, personal property is distributed or divided asprovided in the will. If there is no will, the personal property is tobe distributed to or divided among the heirs. If agreed to by thoseentitled to personal property, it may be given to whoever shows aninterest in the specific items; if no one wants the remaining items,it may be donated to charity.

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Real property is usually distributed by the PR giving an “Assent toDevise” or other document to be filed in the real estate records ofthe county where the real property is located. This evidences onthe real estate records the transfer of the decedent's interest in theproperty to the heirs or beneficiaries.

Property in an estate can be divided equally among the heirs orbeneficiaries so that each owns a common interest in the specificproperty, or it can be divided by giving items separately to heirs orbeneficiaries in such a manner as to effect an equal distributionbased on value. If there is a dispute as to how the property is tobe divided, the PR should consult the estate's attorney; in certaincircumstances, an action may be required to have the probate courtdetermine a fair distribution.

7.FILING RETURNS OR REPORTS

WITH THE PROBATE COURT

The PR may be required to file to certain reports or returns withthe Probate court in which the PR was appointed. The Lettersissued to you by the Court will generally reflect any reportingrequirements which apply from the time of your appointment.However, any PR, even those who may have been initiallyrelieved of the requirement of filing, may be called upon to filereports with the Court to account fully for the administration ofthe Estate.

Every PR should keep complete and accurate records of all deal-ings in the administration of the Estate at least until such time asthe PR has been discharged.

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When required, the following are the usual reports which must befiled with the Probate court:

Inventory - An Inventory of the assets of the Estate is due withinsix (6) months of the date of the PR's appointment. The Inventoryis an itemized list of all property owned by the decedent at thetime death which is subject to administration by the PR and astatement of the approximate value of the assets. A formalappraisal is generally not required, but the PR is expected to setforth an estimate of the fair market value. The form for theInventory is not a standard form. The PR should use the formrequired by the appointing Probate court and should complete it inas much detail as is required by that Court. The Inventory mustbe attested under oath by the PR as being true and complete, andthe PR must certify to having mailed a copy of same to each heir,if the decedent died without a will, or to each beneficiary, if thedecedent died with a will. However, the PR is not required tomail a copy of the Inventory to any heir or beneficiary who is aminor or an incapacitated adult or to any heir or beneficiary whohas waived in writing the right to receive the Inventory.

Accountings (Returns) - An annual return is due within sixty (60)days of the anniversary of the date of appointment, each and everyyear until the PR is discharged. A final return is due with thePetition for Discharge. Each return is an accounting, under oath,of the receipts and expenditures on behalf of the Estate during theyear preceding the anniversary date, together with a statement ofany other facts which are necessary to show the true condition ofthe Estate. Each return is to contain an updated inventory of theassets of the Estate as of each anniversary. With the return, the PRmust either file with the Court the originals of all vouchers, bills,statements of account, or other evidence of the correctness of theentries on the return or file an affidavit that the PR has comparedthe originals with the entries on the return and the return is cor-

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rect. The Probate court may, at any time, require the PR to file theoriginal vouchers to support a return. The PR must certify to hav-ing mailed a copy of each return to each heir, if the decedent diedwithout a will, or to each beneficiary, if the decedent died with awill. However, the PR is not required to mail a copy of the returnto any heir or beneficiary who is a minor or an incapacitated adultor to any heir or beneficiary who has waived in writing the rightto receive the return.

Other reports on the condition or administration of the estate maybe required by the terms of a will of a decedent or by Court order.

8.CLOSING THE ESTATE

When all debts, taxes and expenses of administration have beenpaid, all tax returns have been filed and audited (if required), andall remaining assets have been distributed, the PR (through theestate's attorney, if any) should apply to the probate court for dis-charge from office and all liability. This is done by filing aPetition for Discharge. The heirs or beneficiaries of the estate andany creditors whose claims have not been paid are entitled toreceive notice of this petition. The probate court will examine thecondition of the estate, and anyone interested in the estate has anopportunity to be heard regarding the estate distribution. If the PRwas required to file returns or reports with the probate court (SeeSection 7), these documents will be reviewed at the time the appli-cation for discharge is made. Once the court is satisfied that theadministration has been proper and that the PR has faithfully per-formed the duties required, the court will issue an order discharg-ing the PR from office and any further liability. The PR cannot bedischarged from liability to any minor heir or creditor unless theminor is represented by a guardian-ad-litem in the discharge pro-

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ceedings. The Order for Discharge formally closes the estate, ter-minates any further requirement of filing returns, discharges thePR from office, and discharges the PR and the surety on the PR'sbond, if any, from liability.

A discharge solely from office, but not from liability, may also beobtained in an abbreviated procedure, if desired.

Congratulations, upon your discharge, you will have accomplishedyour duties!

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GLOSSARY OF TERMS

As used in this pamphlet, the following terms are defined. Theterms defined below may also have other or expanded meaningswhen used in other contexts.

Accountings (Returns) - annual accounting to the probate courtof the receipts and expenditures of the estate for the previous year,together with facts that show the true condition of the estate; theaccounting must be made within 60 days of the anniversary ofappointment every year until the PR is discharged; accountingmay be waived in the will or by consent of all the heirs. (SeeSection 7)

Administrator - person appointed to administer an estate wherethere is no valid will; an administrator must post a surety bond assecurity for the proper administration of the estate, although thisbond may be waived if all heirs consent to the waiver.

Beneficiary - the designated recipient of a benefit under a will orcontract; a beneficiary should be distinguished from an heir.

Caveat - formal objection to a probate proceeding; a caveat maychallenge the validity of a will offered for probate.

Common Form Probate - probate of will without notice to theheirs; common form probate is not conclusive on anyone havingan interest in the estate for a period of four years; if common formprobate is set aside, the executor is protected only for actions doneto collect and preserve assets and to pay debts of the estate; com-mon form probate may granted immediately, however, because itis conclusive only after four years, title attorneys frequentlyrequire solemn form probate for the sale of real property from theestate.

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Discharge - an executor or administrator who has performed allduties or who has been allowed to resign may petition to be dis-charged from liability. If no objections are filed to the petition, theprobate judge grants the discharge, releasing the personal repre-sentative from liability. If objections are filed, the judge must holda hearing and examine the condition of the estate and the conductof the personal representative. (See Section 8)

Estate - the name given to all of the collective assets of adeceased person; also may be used to refer to the entire caseinvolving a particular deceased (e.g., Estate of John Doe).

Executor - person named in a will by the testator to manage theestate and carry out the directions of the will; the LettersTestamentary issued by the probate court give the executor powerand authority to carry out the provisions of the will.

Fiduciary - a person having the duty to act primarily for another'sbenefit in matters assigned or undertaken by the person; a personholding the character of a trustee.

Guardian-ad-litem - a person appointed by the court to investi-gate and represent the best interest of a child or incompetent adultwith regard to a particular matter pending before the court

Heir - those persons who inherit the estate of an individual whodies without a valid will; heirs should be distinguished from bene-ficiaries, who are named as recipients in the will, whereas heirsare the recipients recognized by the law in the absence of a validwill

Incapacitated adult - an adult for whom a guardian or conserva-tor has been duly appointed or an adult under a legal disability.

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Inventory - a description of all assets and liabilities of the dece-dent, including a list of all personal and real property owned bythe decedent at the time of death which is subject to the PR'sadministration, along with the approximate values of the property;the PR must mail a copy of the inventory to the heirs or benefici-aries. (See Section 7)

Letters of Administration - the formal document issued by thecourt to evidence the appointment of an administrator of an estateand the authority of the administrator then to act; an administratorhas no authority to act until the Letters have been issued

Letters of Administration with the Will Annexed - letters grant-ed to an administrator where the decedent made a will but did notappoint an executor or where the appointed executor failed to orcould not serve; unless restricted by the probate court, an adminis-trator with the will annexed has the same powers and rights as theexecutor.

Letters Testamentary - the formal document issued by the courtto evidence the appointment of an executor of an estate and theauthority of the executor then to act; an executor has no authorityto act until the Letters have been issued.

Minor - a person who is under the age of 18, the age of majorityin Georgia.

Personal property - any property other than real estate; every-thing which is subject to ownership other than land or an interestin land; personal property includes not only tangible things (e.g.,furniture, automobiles, merchandise, clothes and jewelry, etc.) butalso intangible things (e.g., stocks, bonds, money on deposit,patents, copyrights, etc.).

Petition - a formal, written application to a court requesting judi-cial action on a certain matter

Power of Attorney - an instrument authorizing another to act asone's agent or attorney-in-fact (as opposed to an attorney at law);the agent is called an “attorney-in-fact”; a power of attorney maybe given for financial affairs or for heath care decisions or both; apower of attorney may be general or limited.

Pro rata - proportion or proportionately; shares calculated in pro-portion to the total available.

Real property - land and generally whatever is erected, growingupon or affixed to the land

Solemn Form Probate - probate that is conclusive against allwho have been given notice; notice must be given to all heirs (notbeneficiaries).

Surety - one who undertakes to pay money or to do any other actin the event the principal fails to pay or to act; the guarantor onthe bond of a fiduciary, usually an insurance company speciallylicensed to write surety bonds.

Surety Bond - the obligation of another to guarantee the properperformance of a duty and to pay any loss caused by the failure toso perform; the bond of a personal representative secures the inter-ests of creditors and heirs or beneficiaries; the guarantor, called a“surety,” agrees to pay any loss suffered if the PR fails to performthe duties of the office properly (mismanagement, loss throughnegligence, misappropriation, theft, etc.).

Testator - a person who has executed a valid will.

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Will - an instrument by which a person disposes of his or herproperty, which takes effect after that person's death and which isrevocable during the lifetime of that person; the legal declarationof a person's intentions which he or she wants to be performedafter his or her death.

Year's Support - an award made from an estate for the mainte-nance and support for one year to a spouse and/or minor childrenof the decedent; an award of year's support made be made in anyform, including real property. A petition for year's support must bemade within 24 months of the death of the decedent and can onlybe made by the surviving spouse who has not remarried or bychildren who have not reached the age of 18.

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MY CASE

Estate of

Docket (Estate) No.

Date Letters issued to PR

DUE DATES FOR REPORTS TO COURT

Report (IF REQUIRED) Due on or before:

Inventory (w/in 6months after Letters issued)

Mail copy to each heir or beneficiary

Annual Returns

w/in 60 days of anniversary - each year

Mail copy to each heir or beneficiary

CHECKLIST

Item or Action Date Completed

Apply for taxpayer identification (FEI) number

Establish estate bank account(s)

Apply for SSA and/or VA death benefits

Publish Notice to Debtors and Creditors

File personal income tax returns for year of death

and any prior years still due

File income tax returns for estate for each year

estate remains open

File estate tax return(s), if required

Make final determination of debts and priority;

ascertain solvency of estate; pay debts

File Inventory, if required

File Return(s), if required, for each year estate

remains open

Make final distribution

File Petition for Discharge, with Final Return (if req'd)

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